The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

THE Grand Lucayan Resort properties are still not profitable, Prime Minister Perry Christie said yesterday, adding that “critical” discussions are underway with Hutchison about finding a solution to keep the development open.

“The largest resort owner in Grand Bahama, Hutchison, is still not realising a profit,” Mr Christie said Thursday at the 2015 Grand Bahama Business Outlook.

The government continues to subsidize the operations of both the resort and the casino in Lucaya.

“Hutchison and the government are in critical discussions to find an early sustainable and viable solution so as to keep these properties operational,” Mr Christie said.

“In Grand Bahama, we must resolutely tackle issues of cost, productivity, flexible and competitive yet fair industrial agreements, addition of new inventory, product enhancement, better airfares, lower aviation fuel and handling charges, better airport facilities for non-US flights, lower electricity costs, penetration of new markets, etc. These are all matters which the government and private sector partners must resolutely address.”

On a more positive note, the prime minister revealed that investments are expected to take place at some resort properties in Grand Bahama.

The Deep Water Cay Resort has met with government concerning a proposal for a unique world-class resort project that would be managed by one of the world’s leading six-star resort brands.

Mr Christie said this would bring a magnificent new product to Grand Bahama with unique features.

Additionally, he reported that the owner of the Xanadu Hotel is in the initial stages of closing on the sale and redevelopment of that property.

The hotel, which has 188 rooms and a marina, has been closed for nearly seven years.

Mr Christie also said investors are also showing interest in the purchase and redevelopment of the Royal Oasis Resort.

The 900-room property closed in 2004 following severe hurricane damage.

If concluded, he said, it would certainly breathe new life into the city of Freeport.

According to Mr Christie, initiatives have also started to attract investor interest in the acquisition and redevelopment of the former Ginn Holdings in West End.

He said that major business investments have also been announced in Grand Bahama, including the $5.5 million acquisition of Freeport’s premier commercial and retail centre, Port Lucaya Marketplace.

UK businessman Peter Hunt, the new purchaser, plans to upgrade the area.

Mr Christie said the Grand Bahama Port Authority has reported that over 270 new business licenses were issued last year, creating an estimated 1,200 jobs.

With the completion of the $10 million Okyanos Heart Institute, the island’s first stem cell research facility, Mr Christie said other medical facilities have entered discussions for similar investments on the island.

He reported that a couple of them have already received approvals.